Costco Wholesale (COST) has announced a special cash dividend of $15 U.S. per share, payable on Jan. 12, 2024.
It is the fifth special dividend to be paid by Costco in the last 11 years. The company said the payment will cost it a total of $6.7 billion U.S.
In addition to the special dividend, Costco pays a regular quarterly dividend to stockholders of $1.03 U.S. per share, giving it a yield of 0.65%.
The special dividend payment was announced along with Costco’s fiscal first quarter financial results.
The grocery retailer reported earnings per share (EPS) of $3.58 U.S., which beat Wall Street forecasts of $3.41 U.S., according to data from FactSet.
Costco’s revenue came in at $57.80 billion U.S., which was in line with analyst expectations.
Same-store sales rose 3.8% from a year earlier.
E-commerce sales increased 6.3%, driven by strong demand during the Black Friday weekend.
Costco said its latest sales got a boost during the recent Thanksgiving weekend when it sold four million pies. The company also made $100 million U.S. from the sale of gold bars during the period.
Costco added 72 million paid household members during its fiscal Q1, up 7.6% compared with a year earlier. Shopping frequency at its stores increased 4.7% worldwide and 3.6% in the U.S.
The company opened 10 new locations during the quarter and plans to open 33 locations over the coming fiscal year, up from 23 in the past year.
This was the last quarterly print of long-time Costco chief executive officer (CEO) Craig Jelinek who is retiring. Chief operating officer (COO) Ron Vachris will succeed Jelinek on Jan. 1, 2024.
Costco’s stock has gained 39% in 2023 to trade at $630.78 U.S. per share.
